iCobalt Spinout and Priority Offer to MetalsTech Shareholders

MetalsTech (MTC or the Company) is pleased to provide shareholders with the following update on the proposed listing of its subsidiary iCobalt Limited (iCobalt) via a $4.5m Initial Public Offer, with a Priority Offer to eligible MTC shareholders.

Subject to MTC obtaining shareholder approval, pursuant to ASX Listing Rule 11.4.1(b), for the disposal of the Bay Lake High Grade Cobalt Project (held by MTC’s wholly-owned subsidiary, MetalsTech Bay Lake Cobalt Inc.), iCobalt will seek admission to the Official List of the ASX pursuant an Initial Public Offer (Spinout).

iCobalt will accelerate the exploration activity on the 100%-owned Bay Lake High Grade Cobalt Project and proceed with the finalisation of legal and technical due diligence to acquire 100% of the Rusty Lake Silver-Cobalt-Nickel Mine, both located in Ontario, Canada.

Highlights

  • Alto Capital appointed Lead Manager to the Spinout which is expected to occur during April 2018 under the ticker code ASX:1CO
  • Mr David Riekie appointed as Managing Director of iCobalt having previously held positions as former Managing Director of Avonlea Minerals Limited (now AVZ Minerals Limited (ASX: AVZ)) and previous General Manager – Corporate of Battery Minerals Limited (ASX: BAT)
  • Mr Russell Moran and Mr Gino D’Anna appointed as Non-Executive Directors of iCobalt
  • Dr Qingtao Zeng (PhD Geology) appointed as Non-Executive Director of iCobalt bringing a deep understanding and network of China’s battery minerals sector
  • MTC to be issued 15 million fully paid ordinary shares and 10 million performance rights in iCobalt
  • Priority Offer under the Spinout will entitle MTC shareholders holding a minimum of 20,000 MTC shares, a pro rata entitlement on a 1 for 5 basis as at the Record Date (Qualifying Priority Holder), a guaranteed right to subscribe for a minimum of 10,000 iCobalt shares at $0.20 per share (Minimum Allocation) and scope to subscribe for additional shares (subject to Maximum Allocation of 250,000 iCobalt shares at $0.20 per share i.e. $50,000). The Priority Offer is not strictly a pro-rata entitlement for all MTC shareholders to participate in the Public Offer
  • Record Date for the Priority Offer will be announced shortly, however will be a date not earlier than 5 January 2018, to allow MTC shareholders the opportunity to qualify for the Priority

The full ASX announcement can be found by CLICKING HERE


Additional High Grade Lithium Intersected at Cancet Project

Hard-rock lithium explorer and developer MetalsTech Limited (ASX: MTC) (the “Company”) is pleased to announce laboratory assay results from the recent drilling campaign completed at the Company’s 100%- owned Cancet Lithium Project (the “Project” or “Property”), located in the James Bay Region of Quebec, Canada.

Highlights include:

  • MTC17-044 – 00m @ 1.83% Li2O from 8.00m depth, including:

o  1m @ 6.18% Li2O (12.00m to 13.00m); and

o  2m @ 1.46% Li2O (8.00m to 10.00m)

  • MTC17-049 – 96m @ 1.43% Li2O from 1.54m depth, including:

o  7.96m @ 2.55% Li2O (1.54 to 8.50m)

  • MTC17-050 – 35m @ 1.79% Li2O from 18.29m depth, including:

o  2.18m @ 2.29% Li2O (19.4 m to 21.58m)

  • MTC17-053 – 59m @ 1.23% Li2O (11.34m to 14.93m)
  • Cancet continues to demonstrate near surface high grade mineralisation
  • Resource definition drilling planned at Cancet in mid-2018 designed to extend the strike of the mineralised pegmatite zone as well as further define the mineralisation at depth and drill test additional targets identified through the magnetic survey
  • Field mapping, sampling, stripping and trenching of secondary targets, including targets at the newly acquired Cancet East project will also be completed concurrent to the resource definition drilling program
  • Maiden diamond drilling campaign to commence at the Adina Lithium Project in February 2018 designed to test 2km outcropping pegmatite, where surface outcrop has assayed up to 3.12% Li2O

Commenting on recent results, Executive Director Mr Gino D’Anna stated:

These assays support our understanding that Cancet has the potential to host a near surface and high- grade lithium deposit close to key infrastructure. Metallurgy testing performed on drill core indicate that Cancet material may be treated with a simple and low-cost conventional processing method. Over the past three months we have been successful in attracting investment from two strategic end-users which will enable the company to accelerate development at its portfolio of lithium projects.

The full announcement can be found by 01935376


BCC Completes Technical Due Diligence and Provides Update

MetalsTech Limited (MTC or the Company) provides the following update in respect of the $1.8 million funding deal (Investment) with leading chemical producer Wuxi Baichuan Chemical Industry Co Ltd (BCC).

The Company is pleased to advise that BCC has completed and is satisfied with its technical due diligence and has improved its investment offer through a variation to the binding agreement as announced 26 October 2017. The amendment to the agreement is in line with terms of MTC’s recent $3 million funding deal with leading battery manufacturer Dynavolt Renewable Energy Technology Co Ltd (Dynavolt), see ASX announcement 6 December 2017.

Highlights

•    BCC satisfied with technical due diligence investigations

•    BCC investment terms improved through replacement of the previously guaranteed project-level option with a requirement that BCC increases its share ownership to >12.5% through on-market and off-market share acquisitions to earn:

o    a right to participate in placements for 12 months to maintain ownership position
o    a right to match any project-level investment by a third party within 12 months up to 10% project-level interest

•    Investment remains subject to completion of the transfer of certain project tenements into MTC subsidiaries with transfers already underway

•    BCC afforded an extension of time to complete the Investment to within 20 business days of completion of the relevant tenement transfers

•    MTC believes the outstanding tenement transfers will be complete before the end of this month

•    MTC currently funded to commence further drilling at Cancet and Adina Lithium projects, with on-ground works commencing late January
Commenting on the strategic funding deal, Executive Chairman of MetalsTech, Mr Russell Moran stated:

“We are grateful for the hard work that Wuxi Baichuan has been applying towards facilitating what will be the first stage of a strategic relationship with our Company. The parties have agreed to amend the terms of the investment to provide incentives to Wuxi Baichuan for increasing its ownership position through on-market purchases in keeping with comparable incentives under our investment arrangement with Dynavolt. This as a win-win for all parties and we look forward to Wuxi Baichuan and Dynavolt supporting us in our development strategy.”

The full ASX announcement can be viewed by CLICKING HERE


Signed Strategic Deal With Lithium Battery Manufacturer

MetalsTech (MTC or the Company) is pleased to announce it has signed a binding agreement with Dynavolt Renewable Energy Technology Co Ltd, a wholly-owned subsidiary of Shenzhen Stock Exchange listed and world- leading battery manufacturer Guangdong Dynavolt Renewable Energy Technology Co Ltd (Dynavolt), to subscribe for 10 million shares through an escrowed placement at 30 cents per share (Cornerstone Placement).

Highlights

•    Dynavolt is one of the largest battery manufacturers globally and a market leader in EV car and motorcycle batteries, with a market capitalisation of more than 10 billion CNY

•    Dynavolt to subscribe for 10,000,000 MTC shares at a price of $0.30 per share to raise $3,000,000 with 6 months’ escrow, subject to regulatory approval for which MTC will be seeking shareholder approval for the future issue of shares to Dynavolt

•    MTC to facilitate Dynavolt share accumulation strategy by introducing third party shareholders (and advisors) for the acquisition of up to a further 5,000,000 MTC shares through on-market purchases

•    If Dynavolt increases its share ownership to >12.5% Dynavolt will earn:

o    to a right to participate in placements for 12 months to maintain ownership position
o    a right to match any project-level investment by a third party within 12 months up to 10% project-level interest

•    If Dynavolt increases its share ownership to >15% Dynavolt will earn a Board seat

•    MTC and Dynavolt to work in good faith to negotiate a project-level equity investment at its projects as part of a larger strategy to develop lithium carbonate/hydroxide beneficiation facility in Quebec underpinned by spodumene concentrate feed from MTC projects

•    MTC has also completed a heavily oversubscribed placement to sophisticated and institutional investors of 5,933,333 shares at $0.30 per share to raise a further $1.8 million, which will be issued using the existing placement capacity under ASX Listing Rule 7.1

•    Dynavolt deal is in addition to the $1.8m deal previously announced with Wuxi Baichuan Chemical Industry Co Ltd

•    Strategic funding deal allows MTC accelerate both the Cancet and Adina Lithium Projects

Commenting on the strategic placement, Executive Chairman of MetalsTech, Mr Russell Moran stated:

“Dynavolt is a global leader in the lithium-ion battery space, having been the battery supplier of choice for market leaders including BMW, Ducati, Suzuki and Kawasaki. They recently invested more than 3 billion CNY in building a high-end lithium battery division and we are excited at the opportunity of working closely with them as we seek to position ourselves as a valuable source of raw and refined lithium materials.

The full announcement can be viewed by CLICKING HERE


Trading Halt

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AGM Results

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Acquisition of High Grade Rusty Lake Cobalt-Silver Mine

iCobalt Secures Option to Acquire High Grade Cobalt-Silver Mine

Lithium and cobalt developer MetalsTech Limited (ASX:MTC) is pleased to announce that the Company’s wholly owned subsidiary iCobalt Limited, which it intends to separately list on the ASX in Q1 2018 (iCobalt), has signed a binding option agreement to acquire 100% of the Rusty Lake High Grade Cobalt-Silver Mine located near the Gowganda Township in Ontario, Canada.

Highlights:

  • Option to acquire 100% interest in 52 mining claims for 816 hectares including the historical silver and cobalt producing Rusty Lake Mine which operated between 1910-1913, 1936-1938 and 1964-1966
  • 540 hectares of the project area covers the Nipissing Diabase which is the target geological structure for high grade cobalt, silver and nickel within the area
  • Excellent infrastructure surrounding the project with historical mining activity and located 15km south of the town of Gowganda, Ontario with all-weather road access
  • Recent surface sampling at the Rusty Lake Mine yielded the following assays:
  • 38% Co, 85.7g/t, Ag, 2.08% Ni (stockpile off main mine shaft) – sample Q297453
  • 08% Co, 3540g/t Ag, 8.64% Ni (stockpile off main mine shaft) – sample Q297454
  • 26% Co, 478g/t Ag, 1.31% Ni (stockpile off main mine shaft) – sample Q297455
  • 04% Co, 38.9g/t Ag, 1.6% Ni (stockpile off main mine shaft) – sample Q297456
  • 85% Co, >10,000g/t Ag, 2.97% Ni (angular boulder) – sample Q297458
  • 92% Co, >10,000g/t Ag, 3.93% Ni (angular boulder) – sample Q297457
  • 33% Co, 69.1g/t Ag, 4.79% Ni (stockpile grab coarse) – sample Q297459
  • 8% Co, 34.8g/t Ag, 3.93% Ni (stockpile grab coarse) – sample Q297460
  • 08% Co, 19.4g/t Ag, 0.44% Ni (angular boulder) – sample Q297451
  • 65% Co, 44.4g/t Ag, 0.48% Ni (angular boulder) – sample Q297452

o  1.47% Co, 30.9g/t Ag, 3.52% Ni (NE trench) – sample Q297465

  • AMC Consultants conducting final stages of technical due diligence
  • Attractive share consideration weighted acquisition structure
  • Alto Capital appointed Lead Manager to the iCobalt spinout with MetalsTech shareholders to receive a Priority Offer as well as exposure to a potential in-specie distribution of iCobalt shares

The full ASX announcement can be found by CLICKING HERE


Appendix 3B (Escrow Release)

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Response to ASX Price Query

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Trading Halt

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